HectorDAO, a decentralised autonomous organisation, has filed for Chapter 15 bankruptcy in the United States due to financial setbacks stemming from the collapse of the Terra (CRYPTO:LUNA) network, the Multichain protocol, and a significant hack.

The DAO suffered a $16.4 million loss following the Terra ecosystem's collapse in 2022, and subsequent challenges culminated in a $2.7 million hack in January 2023.

Following internal turmoil and accusations of mismanagement, HectorDAO's community opted for liquidation in July 2023, prompting a Chapter 15 filing to manage international investor claims and proceedings in U.S. courts.